Page 68 - UKRRptSept23

chains continue to affect the building material market.
9.1.5 Retail sector news
Retail chains lost 20% of their turnover during the first year of the war.According to results from 2022, this indicator amounted to UAH 1.16T, which is UAH 300B, or 19%, less than in 2021 (UAH 1.44T), according to an Association of Retailers of Ukraine study. The study states that occupation of large territories, looting, shelling of peaceful cities, constant air strikes, and blackouts have hit companies in the retail trade sphere hard. In 2022 turnover fell despite inflation, which last year was 26.6%. This means that retailers' actual turnover fell much more. In the total turnover amount, UAH 150B came from Ukraine's leading grocery operator – the ATB Corporation. The second Ukrainian retailer in terms of turnover is the Silpo chain, with UAH 70B in revenue, followed by Fora and Metro Cash & Carry. The first non-grocery operator, Rozetka Marketplace, finished 2022 in fifth place.
9.1.6 Agriculture sector news
Ukraine has started the sowing season for the 2024 harvest, but the forecasts are not encouraging. Traditionally, in the second half of August, the sowing campaign for the following year's winter crops begins in the southern regions of Ukraine. However, forecasts regarding the season's results are quite pessimistic. In 2022, the winter grain crop area amounted to 4.5 million hectares. In 2021, the last full season before the full-scale invasion, the planted area for winter crops exceeded 6.5 million hectares. It is noted that, according to forecasts, the planted area will decrease even more this year by 1–1.5 million hectares. The main reasons for the reduction in production volumes: are a shortage of working capital among agricultural producers, occupation of territories and mining, the collapse of export logistics after the suspension of the grain corridor, and low purchase prices due to the high logistics cost. As a result, five to six million tons of wheat and barley will be produced, or almost a third of the current year's results.
Poland plans to convince other EU members to embargo Ukrainian grain after September 15. This step will protect Polish farmers, and their interests are more important to the country's government than any EU rules on this matter, saidPolish Agriculture Minister Robert Telusch. "We know what could happen if grain from Ukraine got to Poland after September 15. Especially since the price of grain is currently low and warehouses are already full. We know this is in our interests and will defend it. That's why I am going with this message to Spain for the summit of agriculture ministers," he said. Telusch and representatives of other countries bordering Ukraine (Hungary, Bulgaria, Slovakia, Romania) will try to convince other EU countries to extend the ban on grain imports from Ukraine to the EU until the end of the year. According to the Ministry of Agriculture of Poland, the country's government allocated €3.18B in financial support to its farmers, while the aid from the European Commission was only €63.61M.
The largest sugar producer in Ukraine doubled its six-month profit.Agropromholding Astarta generated €54.73M in net profit for the first half of the year, which is 97.4% more compared to the first half of 2022. According to a report from the company, revenue for the year's first half increased by 31.6% to €287.25M. Export revenue increased by 49% to €158M, providing
68 UKRAINE Country Report September 2023 www.intellinews.com